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Tuesday, March 6, 2012

Capitalism is the Entrepreneur's Best Friend by Andrea Dantzer

Andrea Dantzer

3-6-2012

You hear the term capitalism thrown around often
these days, but few people really understand what capitalism is and what it
entails. The term capitalism was popularized by Karl Marx, in his book, The
Communist Manifesto. Marx used it as a word to describe private ownership and a
free market. Although Marx decried it, the term defines individual economic
freedom. In a broader approach, it is the free market economy.

Capitalism is often confused with crony capitalism,
or what is often referred to as corporatism. Corporatism cannot exist without
special interest groups and big government. The bigger the government is, the
bigger and more powerful corporations are. Entrepreneurs cannot thrive under
corporatism. An entrepreneur comes up with a new invention or idea to fill a
demand in the market, and they also assume the risks involved with their
business venture. When corporations are bolstered by special interest and
lobbyist dollars, the market is stifled and competition is eliminated.
Entrepreneurs need competition in order to fill the need of the market place
with a good or service and at a price the consumer is willing to pay.
Capitalism fills the need of the entrepreneur and the entrepreneur fills the
need of society.

The risk-reward system of capitalism is often
denounced, however, the free market offers true protection from greedy corporatist and unscrupulous companies. In a limited government, corporations
enjoy no special status and are forced to compete with the free market.
Entrepreneurs then have a chance at succeeding. Failing is also an integral
part of the free market society. Companies that are not filling the need of the
marketplace are forced to bring their prices down to what the consumer is
willing to pay or go out of business. A society with the mindset that some
corporations are too big to fail is in deep trouble as they are manufacturing
success rather than allowing it to happen naturally.

Entrepreneurs would also have a choice in how to
obtain their business working capital to fund their venture, rather than having
stifling and stringent regulations obstructing their path. The free market
allows them to absorb risks while the free market provides the incentive of
making a profit. Business working capital is essential for an entrepreneur to
take the risks necessary in order to gain the reward.

A market system that allows the individual to make
decisions regarding the best use of its economic resources is always better and
garnishes better results than a government making those decisions and
controlling the marketplace.

Andrea
Dantzer is an advocate for the return of our Constitutional Republic
and is on a self described quest to educate Americans on the issues of
free markets, non interventionist foreign policy, and civil liberties.
Andrea is a home-schooling mother of three who enjoys being active in
the home-schooling revolution and readingwww.mises.org daily. She can be contacted at AndreaDantzer@yahoo.com.